Item 15 - Financial Update
West Dunbartonshire Council · 29 October 2025
Back to West Dunbartonshire Council — 29 October 2025 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Council: 29 October 2025 _______________________________________________________________________________ Subject: Financial Update 1. Purpose 1.1 To provide an update on the financial challenges facing the Council and the estimated 2026/27 – 2029/30 revenue budget gaps. 1.2 This is the second financial update since the 2025/26 budget was set on 5 March 2025 and rolls forward previous estimates reported to Council on 18 June 2025 as well as updating assumptions. The assumptions will continue to be refined as the financial year progresses. This report also reinstates the five-year forecast window (only four years were reported in June) and the best case, mid-range and worst-case scenario analysis. Throughout the report the primary focus is on the mid-range however, where appropriate, reference is made to best case and worst-case assumptions. 1.3 The report also provides information on work undertaken on the Council’s debt portfolio, a review of suspense accounts and a recommendation regarding provision of funding for Additional Support Needs swimming lessons. 2. Recommendations 2.1 Members are asked to I. note the Scottish Government budget has been delayed until mid- January as a consequence of the later than expected publication of the UK Government Autumn Statement. This means the Council will not be advised of its indicative 2026/27 settlement until mid- January II. approve the award of £10,000 to fund Additional Support Needs swimming lessons provided by West Dunbartonshire Leisure III. note the updated position regarding projections for the Council’s estimated revenue budget gaps in 2026/27-2030/31, particularly the updated estimated mid-range 2025/26 budget gap of £8.882m IV. note the £4.309m benefit to the Council obtained through early repayment of long-term loans with that benefit split between general services (£3.490m) and the Housing Revenue Account (£0.819m) V. approve the release of £0.722m of resettlement funds to unearmarked general fund reserves with £0.499m retained in an ITEM 15
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earmarked reserve to support future provision of resettlement activity VI. approve the allocation of £2.924m of Energy Efficient Scotland Area Based Scheme funds as £1.992m to the HRA, £0.250m to unearmarked general fund reserves with £0.486m retained for retentions and £0.196m to make provision for potential bad debt VII. approve use of £1.261m of unallocated reserves to rebuild the Voluntary Redundancy / Early Retirement reserve. 3. Background 3.1 On 5 March 2025, the Council agreed a balanced 2025/26 revenue budget, a revised capital budget and revenue estimates for 2026/27- 2029/30. That budget report also highlighted estimated future year budget gaps based on a range of assumptions including future Scottish Government funding, inflation and future interest rates. The consequences of the decisions taken by Council on 5 March to agree a balanced 2025/26 budget reduced the cumulative estimated future budget gap and a report to Council on 18 June 2025 provided a further update on the financial challenges faced by the Council and updated the estimated budget gaps as set out in Exhibit 1. Exhibit 1 – Estimated Cumulative Budget Gaps (Mid-Range) at 18 June 2025 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £,000 8,274 17,473 31,674 41,337 51,146 4. Main Issues 4.1 I have revisited the key assumptions and cost pressures detailed in the 18 June 2025 Council report. This is summarised in the paragraphs below. 4.2 Scottish Government Medium Term Financial Strategy The Scottish Government Medium Term Financial Strategy (MTFS) was published on 25 June 2025 alongside a new Fiscal Sustainability Delivery Plan (FSDP). The MTFS reflects the impact of the UK Spending Review announced on 11 June 2025. The conclusions of the Scottish Spending Review will be published alongside the 2026/27 Scottish Budget. The Spending Review is expected to set out indicative resource spending plans up to 2028/29 and capital spending plans up to 2029/30. The main points to note from the MTFS are: Growth in overall funding for the Scottish Government budget is set to increase by 0.8% per annum in real terms.
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Projected funding and spending is expected to grow from a balanced budget position in 2025/26 to a funding gap of £2.6 billion in 2029/30. Capital block grant is expected to decrease by 1.1% in real terms between 2025/26 and 2029/30. Capital budget is projecting a £1.1 billion budget gap in 2026/27 rising to £2.1 billion by 2029/30. Health and Social care spend has grown faster than predicted at the last MTFS, 5.6% compared to 4%. The MTFS confirms the challenging financial position faced by the Scottish Government and the FSDP sets out the actions that will be taken to close the revenue gaps. These include: Reduction in workforce of 0.5% a year, saving £700 million by 2029/30. (Given expected increases in NHS staffing this is likely to require larger staff reductions in other sectors) Wider public sector efficiencies and reforms and revenue raising to save a further £1.5 billion by 2029/30. Increased “public value”, expected to generate savings between £300 million and £700 million a year. There is less detail in the FSDP on how the Scottish Government intends to close the capital gap, although greater private sector involvement is mentioned. 4.3 It is difficult to determine what the implications of these national announcements will be for the local government sector. However, given the Scottish Government’s stated key priorities (child poverty, cutting NHS waiting times, climate change, economic growth and a shift in funding towards prevention and early intervention), it is likely other areas may face significant real term funding reductions post 2025/26. The Scottish Parliament Information Centre’s analysis of the MTFS announcement noted that local government’s share of total Scottish Government spending falls from 24.4% in 2025/26 to 23% in 2029/30. 4.4 At a Council level, while the precise impact will not be known until the Scottish Government financial settlement is announced, this national picture indicates the financial challenges the Council has faced in recent years are likely to remain a prominent feature of budget setting over the medium term. This means the Council must maintain its focus on taking sustainable budget decisions and ensuring resources are targeted to areas of highest need. 4.5 Scottish Government Finance Settlement The 18 June 2025 report advised assumptions in relation to future year Scottish Government funding were: Best Case - Flat Cash Mid-Range – Flat Cash Worst Case - 1.0% reduction.
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4.6 Future Scottish Government funding levels is one of the key assumptions within the Finance Update. While it is considered good practice to prepare longer term financial plans it is challenging to do so with great accuracy due to single year Scottish Government finance settlements. As part of the 2025/26 budget setting report members were advised that the 2025/26 cash increase, while significant in comparison to previous years, was largely funded through significant increases in revenue through taxation and increased investment in UK public spending and that it is not considered realistic to assume similar increases in future years. At this stage it is prudent to retain the assumption of a flat cash settlement in the best case and mid-range scenarios and a 1% reduction in the worst-case scenario. 4.7 The UK Government has confirmed their intention to publish the Autumn Statement on 26 November 2025. This is later than previous years (e.g. 30 October 2024) and therefore later than anticipated. This has a knock on effect on the timing of the Scottish Government’s budget plans which is now to be published on 13 January. This mans the Council will not receive its indicative settlement until mid-January which will place the Finance team under pressure to analyse the impact on the Council’s estimated budget gap which will need addressed at the Council budget meeting on 4 March 2026. 4.8 Changes to Base Budget There have been four changes to the Council’s base budget since the 18 June 2025 Budget report to Council. 4.9 Base Budget Adjustment 1 – Service Concession Adjustment (£1.070m Favourable) In the 18 June 2025 report to Council, a base budget adjustment was reported in relation to how we are accounting for the benefit to the Council of the Service Concession Adjustment first reported to Council in December 2022. This has been further refined to better reflect the profiling of the benefit which has resulted in a decrease in the budget gap of £1.070m in 2026/27. While this is welcomed it should be noted this is simply a reprofiling of the benefit rather than an overall reduction in the Council’s future budget gaps. 4.10 Base Budget Adjustment 2 – Transport Income (£0.117m Adverse) As reported to Council in August 2025 (as part of Revenue Budgetary Control Report) Transport Services is operated on behalf of services across the Council and allocates all costs out to the appropriate service. A review of the Transport budget has identified a misalignment between the expenditure and income budgets which needs to be corrected. 4.11 Base Budget Adjustment 3 – Roads and Neighbourhood Income Budgets (£0.150m Adverse)
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A review of Roads and Neighbourhood income budgets has identified two areas where 2025/26 actual income is projected to fall short of budget and it is considered unlikely it will recover in future years. Cremation income is forecast to be under recovered by £0.110m mainly due to a reduction in the number of cremations considered to be a consequence of a new crematorium opening in East Dunbartonshire. In addition, commercial waste income is expected to under recover by £0.040m due to collections being reduced as people have been removed from the collection list due to non-payment of invoices. 4.12 Base Budget Adjustment 4 – Savings Reprofile (No impact in 2026/27) This is to correct a minor error when calculating the profiling of future saving options from 2027/28 onwards. It has no impact on the 2026/27 budget and reduces the gap from 2027/28 onwards by £0.033m, reducing to £0.0024m in 2029/30. Cost Pressures 4.13 Generally, services work on the basis of having to contain any cost pressures within current resources, however, there are cost pressures which are unavoidable and need to be factored into future budget processes. There has been four new cost pressures in excess of £0.100m identified since the 18 June 2025 Budget report to Council. 4.14 Cost Pressure 1 – Additional Support Needs Job Evaluation (£0.305m Adverse) Additional Support Needs grade 3 and grade 4 posts were subject to job evaluation, the outcome of which was to increase 192 staff to grade 5. This has increased the Education staff budget by £0.305m. 4.15 Cost Pressure 2 – Clydebank Shopping Centre Income (£0.250m Adverse) A review of income budgets conducted as part of the 2024/25 year-end process has highlighted the income budget for Clydebank Shopping Centre is set at an overly optimistic level and requires adjustment. Existing income projections do not fully account for the practical challenges associated with the property, particularly those stemming from the age and condition of the structure. Several deductions have become necessary due to ongoing maintenance liabilities, increased repair costs, and the resulting operational constraints imposed by the building’s aging infrastructure. These factors collectively exert significant pressure on the achievable rental income. As a result, an adjustment of £0.250 million is required to more accurately reflect anticipated income levels. 4.16 Cost Pressure 3 – Cost of Grass Cutting (£0.250m Adverse) As agreed by the Housing and Communities Committee, IRED Committee and ultimately Council in August 2025 the Council is to
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restore levels of grass cutting to 2024/25 levels. This will cost £0.300m with the working assumption being this will be split 50/50 between General Services and the Housing Revenue Account. The allocation of costs will be finalized via a report to be brought to Council in December 2025. A further £0.100m of general services funds are required to reinstate twice yearly weed killing and to retain bedding plants in public parks. 4.17 Cost Pressure 4 – Loan Charges (£0.180m Adverse) The Finance Team have completed their annual review of loan charges to reflect the most up to date interest rate projections, and any agreed additions to the capital programme or reprofiling. This has resulted in a cost pressure being required of £0.180m in 2026/27 which will increase in future years. Note this is still a volatile area so future projections will continue to be assessed on an annual basis. 4.18 There are eight further cost pressures which are under £0.100m in value and total £0.416 m in 2026/27, These are summarised below: £0.085m for additional revenue costs associated with the move to a new financial ledger system £0.060m for the inflationary impact on diesel costs and levels of fuel required to undertake waste collections. £0.060m for salt and grit budget which is no longer sufficient to ensure the winter gritting programme is undertaken. £0.056m for ICT staff previously charged to capital who are now occupied on revenue activity. £0.050m to provide sufficient budget for the cost of asset valuation carried out by the Council’s external valuers. £0.045m for a 5% increase in the sustainable rate paid to Funded Early Learning and Childcare Providers as agreed by Education Committee on 28 May 2025. £0.030m to meet statutory requirement to produce a Local Development Plan. £0.030m for pothole repair materials due to inflationary cost increases Additional Support Needs (ASN) Swimming Lessons 4.19 Following a motion to Council in April 2024, it was agreed the ASN Swimming Programme delivered by West Dunbartonshire Leisure would be funded from Cost-of-Living funding in 2024/25 and 2025/26 with the costs for 2026/27 onwards to be funded by the Council on an ongoing basis. A recommendation was to be provided to Council on the extent and source of the ongoing funding. The scheme provides subsidised lessons to 30 children at Clydebank Leisure Centre weekly. The net cost of providing the scheme on the same basis is £10,000 per annum (total cost of £16,000 being offset by
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£6,000 of charges for the lessons). Council is asked to consider whether they will provide the £10,000 of funding on a recurring basis. Employee Costs 4.20 The Public Sector Pay Policy, published alongside the Scottish Budget, set out a multi-year framework of a 9% pay envelope covering 2025/26, 2026/27 and 2027/28. For 2026/27 a planning assumption of the Council having to fund 3% of any pay award was applied in the best case and mid-range scenarios, with 4% assumed in the worst-case scenario. 4.21 Since last reporting the Scottish Joint Council and Chief Officers pay award for 2025/26 and 2026/27 have been agreed at 4% and 3.5% respectively. The additional funding to be made available by the Scottish Government to contribute to the 2026/27 pay award, and associated expenditure beyond our planning assumptions, is still to be built into our future year forecasting. This will be done prior to the next Finance Update in December however it is not expected to make a material difference to the budget gap as the Council’s contribution is to be in the region of the assumed 3% with the Scottish Government contributing the additional 1%. For 2027/28 - 2030/31 the assumption the Council will need to fund 3% of any pay award in the best case and mid-range scenarios, with 4% assumed in the worst-case scenario has been retained. 4.22 The Teachers pay award covers the period August to July and has been agreed up to 31 July 2025. At this stage, an increase for 2025/26 and 2026/27 has been assumed in line with the SJC agreed pay award. However, this is still at a negotiating stage. Any increase beyond planning assumptions will have a further impact on the Council’s budget gap. Revised Mid-Range Estimated Budget Gap 4.23 Exhibit 2 sets out the revised cumulative estimated budget gap in the mid-range for 2026/27 to 2030/31. It illustrates the Council are faced with a mid-range budget gap of £8.882m in 2026/27 rising cumulatively to £54.376m in 2020/31. Exhibit 2 – Revised Mid-Range Estimated Budget Gaps (Cumulative) Para Ref 26/27 £000 27/28 £000 28/29 £000 29/30 £000 30/31 £000 Budget Gap 18 June 3.1 8,274 17,473 31,674 41,337 51,146 Service Concession Adjustment 4.9 (1,070) (286) 1,006 927 0 Transport Income 4.10 117 117 117 117 117 Roads & Neighbourhood Income 4.11 150 150 150 150 150 Savings Reprofile 4.12 0 (33) (33) (24) 0
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Additional Support Needs Job Evaluation 4.14 305 305 305 305 305 Shopping Centre Income 4.15 250 250 250 250 250 Grass Cutting 4.16 250 250 250 250 250 Loan Charges 4.17 180 180 680 1,180 1,680 Other Cost Pressures under £0.100m 4.18 416 408 461 464 468 ASN Swimming Lessons (Assuming Council Approval) 4.19 10 10 10 10 10 Revised Budget Gap 8,882 18,824 34,870 44,966 54,376 Early Loan Repayment 4.24 The Council’s Finance Team, in conjunction with our Treasury Advisers (MUFG), identified an opportunity to terminate £33.1m of long-term fixed rate loans in return for a discounted repayment amount. The four loans were due to mature between 2064 and 2078, and the total amount of the discount made available for early repayment was £4.309m. The benefit of this discount can be accounted for in the current year which provides the opportunity to use the funds to rebuild the Council and Housing Revenue Account (HRA) reserves which are both below the Prudential Target. 4.25 The Council’s debt portfolio is split between general services and the HRA and it is appropriate that the benefit of £4.309m is shared proportionately between these two constituent parts. The allocation of the benefit is based on the borrowing undertaken between 1 April 1997 (local government reorganisation) and the 2005/06 financial year which is when the four market loans were agreed. This reflects the fact the loans were originally taken out to meet the borrowing requirements of the Council and HRA during this period as they were long term loans. It also assumes any debt held prior to the reorganisation relates to specific borrowing inherited by both the Council and the HRA. 4.26 Based on the information in paragraph 4.25 the £4.309m is shared as follows General Services - £3.490m (81%) HRA - £0.819m (19%) These adjustments will be reflected in the Period 5 Budgetary Control reports presented to Council and the Housing and Communities Committee.
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Suspense Accounts / Earmarked Reserves 4.27 A review of the Council’s earmarked reserves and suspense accounts has identified material sums sitting in either earmarked reserves of suspense accounts which have accumulated over a number of years which can be released back to unearmarked reserves, either within general services or the HRA. 4.28 Resettlement Funds (£1.221m) The Council has, and continues to, participate in a number of global humanitarian resettlement schemes since 2015 offering secure accommodation for those fleeing persecution, sectarianism, conflict, and threat within their homeland. There are five schemes set up in the Council’s ledger system. These, and their first transaction dates, are: Syrian Refugee Project (2016/17) Afghan Refugee Project (2021/22) Ukraine Refugee (2022/23) Resettlement Support (2024/25) Asylum Dispersal Grant (2024/25) 4.29 Over the period 2016/17 to 2025/26 income of £5.194m has been received across the five resettlement schemes with that income primarily being Home Office and Scottish Government grants. 4.30 Over the same period the total expenditure on the five schemes has been £3.973m which has resulted in a balance of £1.221m sitting in a combination of: General Fund Earmarked Reserve - £0.499m Suspense Account - £0.722m Expenditure covers the costs of the resettlement team and a range of items to support families and individuals to settle in West Dunbartonshire. 4.31 Over this period none of the income received for resettlement schemes has been allocated to other Council services which would have been impacted by resettlement (i.e. Education, Revenue and Benefits and Assets for office accommodation costs for the resettlement team). If that had occurred this level of surplus funds would not be available at the current time. There is expected to be future income through Scottish Grant funding however, there is currently no clarity over what that future level of income will be. Therefore, it would be prudent to retain some of the unspent income from historic years in an earmarked reserve which can be reconsidered at a later stage. Therefore, it is recommended that the £0.499m is maintained in a reserve earmarked for refugee resettlement schemes with the £0.722m released to unearmarked general reserves to support the rebuild of Council reserves.
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Energy Efficient Scotland Area Based Scheme (EES ABS) (£2.924m) 4.32 The Energy Efficient Scotland Area Based Scheme (formerly known as Home Energy Efficiency Programmes scheme) is a Scottish Government supported scheme to target energy efficiency improvement works in privately owned housing in fuel poverty areas. The works are undertaken across ex council properties sold under the Right to Buy and other private sector dwellings. The cost of the works is funded through a combination of Scottish government grant and owner contributions. The management of the scheme has been delivered by HRA funded officers in the Housing Asset & Investment team supported by other HRA funded officers in housing services and delivered in conjunction with HRA funded Building Services and their appointed specialist contractors. 4.33 The EES ABS suspense account has a transaction history dating back to 2018/2019 with a total of £7.516m of income and £4.907m of expenditure being accounted for. This leaves a balance in the suspense account of £2.609m. In addition, there is a further £0.315m of owner contributions which have not been invoiced yet. If the £0.315m is fully received then this would leave a balance in the suspense account of £2.924m. However, note that some of the work relating to the £0.315m may have taken place more than a year ago which might increase the risk the income is not recovered. 4.34 A review of the suspense account has identified some issues over the period since 2018/19 which can be summarised as: Grant income of £6.9m has been correctly posted to the suspense account. Owners’ contribution income has been incorrectly posted to HRA accounts EES ABS expenditure has been incorrectly posted to the HRA capital account. 4.35 Housing and Finance officers have worked through existing information to determine the appropriate transactions required to apportion the £2.924m in a manner that: recompenses the HRA capital account for expenditure it should not have been charged ensures owner contribution income posted to the HRA is reversed ensures there is suitable provision made to provide funding for any retentions applies a prudent approach to works still to be invoiced to reflect an increased risk of non-recovery. This has been a substantial task as the transactions cover eight financial years.
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4.36 The following allocation of the £2.924m will correct historic errors: £1.992m to HRA to recompense the HRA capital account £0.486m retained to fund retentions and outstanding work £0.250m released to general fund unearmarked reserves £0.196m retained to provide for the risk of non-payment of invoices The retention of £0.196m for non-payment of invoices can be reconsidered as part of the year end accountancy procedures after an assessment of rates of recovery is made. The implications of the £1.992m allocation to the HRA needs to be reviewed by the Finance Team and this will be reported to the Housing and Communities Committee and Council through future budgetary control reports. 4.37 Going forward, there will be no use of suspense accounts for items such as the refugee resettlement fund or EES ABS. All income and expenditure transactions will be recorded in the general fund with allocations made to the HRA where appropriate. Empty Homes Fund (£0.150m) 4.38 The Empty Homes Fund is a program that provides interest free or low interest loans to property owners to renovate or bring their empty properties back into use, for sale of rental. It was created in 2016/17 with a £150,000 credit posted to a suspense account in that year. There have been no transactions since that date. The balance is rolled forward each year. The Scottish Government will clawback any unspent funding in 2028. The appropriate service will investigate any options to use the funds for the intended purpose before the 2028 clawback. In the meantime, an earmarked reserve will be created and the funds moved out of the suspense account. European Social Fund (£0.442m) 4.39 The funds retained in this suspense account are essential for the continued development and delivery of key employability initiatives supporting vulnerable groups. No One Left Behind and UK Shared Prosperity Fund monies are made available on an annual basis which negatively impacts on our most vulnerable residents who, because of complex needs, require the longevity of sustained and intensive support to move towards employment. The availability of an earmarked balance would mitigate against the hard stop annual funding imposes and allows for continued support over a longer period. Therefore, these funds will be retained for this purpose, but an earmarked reserve will be created and the funds moved out of the suspense account.
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Developer Contributions (£0.379m) 4.40 Developer contributions are financial payments or in-kind contributions made by developers to support infrastructure and mitigate the impacts of new developments. They are contributions secured through legal agreements known as ‘Section 75 agreements’ as they are governed by Section 75 of the Town and Country Planning (Scotland) Act 1997. The Council has £0.379m sitting in a suspense account from developer contributions associated with previous agreements. The funds are for the purposes set out in the agreements so need to be retained for these purposes. An earmarked reserve will be created and the funds moved out of the suspense account. Energy Efficiency Grants (£0.330m) 4.41 These funds relate to Scottish Government grant money for Energy Efficiency projects. The Council has a statutory duty to contribute to Scotland's ambition to be Net Zero by 2040. In discharging this duty, the Council may seek external funds for large-scale capital works but it can also make a significant contribution through reducing its own emissions through smaller-scale projects (for example, the replacement of older, inefficient heating systems and controls or improvements to building management systems). Retaining these funds will enable officers to develop a programme of energy improvement projects focused on this with the potential to recycle savings back into the fund to deliver more impact and greater savings. An earmarked reserve will be created and the funds moved out of the suspense account. Unallocated Reserves and Voluntary / Early Retirement Reserve 4.42 As per the Period 5 Budgetary Control Report presented to this Council as a separate agenda item the Council has a forecast year end unallocated balance of £6.379m which exceeds the prudential target (£6.090m) by £0.289m. This already includes the £3.490m benefit from the loan repayment (para 4.26). Exhibit 3 summarises an updated position after releasing the resettlement funds (para 4.31) and EES ABS Funds (para 4.36). 4.43 Exhibit 3 – Forecast Unallocated Reserves as at 31 March 2026 £,000 Unearmarked Reserves at 31 March 2025 3,513 Benefit from loan repayment (Para 4.26) 3,490 Release from earmarked reserves (refer to P5 BCR Council report) 78 Forecast service outturn (refer to P5 BCR Council report) (702) Forecast Unallocated Balance as at 31 March 2026 (as per P5 BCR Report) 6,379 Prudential Target 6,090
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Forecast Unallocated Balance above Prudential Target (as per P5 BCR Report) 289 Release of resettlement funds (Para 4.31) 722 Release of EES ABS funds (Para 4.36) 250 Updated Forecast Unallocated Balance above Prudential Target 1,261 4.44 The Council have an earmarked reserve to make funds available for voluntary redundancy and early retirements (VR/ER). The creation and use of this reserve has supported the Council to deliver a range of saving options and restructures. There is only £0.593m left in the earmarked reserve and it is expected it will be fully used up by 31 March 2026 meaning there will be nothing left to carry forward into 2026/27. It is therefore recommended that the forecast balance of £1.261m of unearmarked reserves above the prudential target is used to rebuild the VR/ER reserve to support the delivery of future voluntary redundancies and early retirements. Other Issues Health and Social Care Partnership Requisition 4.45 The Council, at the budget meeting on 5 March 2025, agreed an HSCP requisition of £93.442m. There is a working assumption that the future allocation to the HSCP is on the basis of ‘flat cash’ plus the appropriate share of the Health & Social Care funding commitments made by the Scottish Government. However, this is only an assumption and the HSCP requisition will be a matter for Council to consider as part of the budget process. Council Tax 4.46 The estimated budget gap makes no assumption over future Council Tax increases as setting Council Tax is subject to a political decision when agreeing the budget in March 2026. However, by means of illustration a 10% Council Tax increase would generate an additional £4.540m and increase the weekly bill for a Band D taxpayer by £3.00 (assuming they are liable for the full Council Tax charge). Fees and Charges 4.47 In 2025/26 an increase of 5% was applied to fees and charges. The current assumption built into the estimated future budget gaps is an annual increase of 5% in all three scenarios (best case, mid-range and worst case). Every 1% increase beyond 5% would generate an estimated £0.089m in revenue. 5. People Implications 5.1 None directly from this report but there is a strong link between HR and budgets.
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6. Financial and Procurement Implications 6.1 Sets out the estimated revenue budget gaps in 2026/27 to 2030/31 and ways to rebuild the Council and HRA reserves. There are no direct procurement implications arising from this report. 7. Risk Analysis 7.1 None directly from this report but any proposals to address the estimated budget gap will need to consider risk. 8. Equalities Impact Assessment (EIA) 8.1 None directly from this report but any proposals to address the estimated budget gap will need to consider equality issues. 9. Consultation 9.1 The views of all Chief Officers have been requested on this report and feedback incorporated herein. 10. Strategic Assessment 10.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the strategic priorities of the Council’s Strategic Plan. 10.2 The General Services revenue budget contributes to all categories by providing funding in specific areas to help the Council achieve and develop these priorities. Laurence Slavin Chief Officer - Resources Date: 09 October 2025 Person to Contact: Laurence Slavin, Chief Officer Resources Email: laurence.slavin@west-dunbarton.gov.uk Appendices: None Background Papers: Budget Report to Council - 5 March 2025 Finance Update to Council – 18 June 2025 Wards Affected: All